Bankruptcy court dismisses insolvency plea against Dish TV promoter: Report
The plea was filed by IDBI Trusteeship Services on behalf of Franklin Templeton Asset Management (India) Pvt Ltd
A bankruptcy court has dismissed a plea by IDBI Trusteeship Services Ltd to initiate a corporate insolvency resolution process against Dish TV promoter Direct Media Distribution Ventures Pvt Ltd., according to a media report.
The plea was filed by the debenture trustee on behalf of Franklin Templeton Asset Management (India) Pvt Ltd, which had acquired non-convertible debentures worth ₹425 crore issued by Essel Infraprojects Ltd in 2015.
Direct Media had assured corporate guarantee on behalf of Essel, on the basis of which the trustee approached the Mumbai bench of the NCLT to admit the promoter after it failed to furnish dues of over Rs 599 crore, inclusive of interests, say media reports.
In a rebuttal to the petition, the promoter's counsel Nausher Kohli said that the debentures matured on May 22, 2020. Direct Media's guarantee was invoked on June 12, 2020, and the default date occurred during the suspension period, barring the admission of an insolvency petition.
